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A federal judge has further blocked the National Institutes of Health from implementing a policy to crackdown on how much money it doles out for indirect costs associated with grants it awards.
NIH announced a plan last month to set the rate at 15% across the board.
“The United States should have the best medical research in the world. It is accordingly vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead. NIH is accordingly imposing a standard indirect cost rate on all grants of 15% pursuant to its 45 C.F.R. 75.414(c) authority,” the NIH explained in a notice last month.
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President Donald Trump speaks in the Roosevelt Room of the White House in Washington, D.C., on March 3, 2025. (ROBERTO SCHMIDT/AFP via Getty Images)
But the agency has been blocked from implementing the policy as challenges play out in court.
U.S. District Judge Angel Kelley, who had issued a temporary restraining order last month, granted a preliminary injunction on Wednesday.
“The imminent risk of halting life-saving clinical trials, disrupting the development of innovative medical research and treatment, and shuttering of research facilities, without regard for current patient care, warranted the issuance of a nationwide temporary restraining order to maintain the status quo, until the matter could be fully addressed before the Court,” the court document declared.
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“Following full briefing and oral argument by the parties, as well as review of accepted amicus briefs, the Court GRANTS a nationwide preliminary injunction,” the document states.
After then-President Joe Biden nominated Kelley to serve on the U.S. District Court for the District of Massachusetts in 2021, Republican Sens. Lindsey Graham of South Carolina, Chuck Grassley of Iowa and Susan Collins of Maine voted with Democrats to confirm the jurist to the role.
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The judge’s decision comes as various states, universities and other entities challenge NIH’s attempt to adopt the across-the-board 15% rate.
